10-Q 1 celh-20220930.htm 10-Q 10-Q
883,937truefalseP2Y--12-31falseQ300013417660001341766us-gaap:CommonStockMember2021-09-300001341766us-gaap:SeriesAPreferredStockMember2022-09-300001341766us-gaap:CommonStockMember2022-09-3000013417662021-06-112021-06-110001341766celh:PepsicoIncMember2022-08-012022-08-010001341766srt:MinimumMember2022-09-300001341766us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001341766srt:EuropeMember2021-01-012021-09-300001341766celh:RangeOfExercisePrice6Member2022-01-012022-09-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001341766srt:AsiaMember2021-07-012021-09-300001341766country:SE2021-12-310001341766srt:AsiaMember2022-01-012022-09-300001341766us-gaap:FairValueInputsLevel2Memberus-gaap:IndefinitelivedIntangibleAssetsMember2022-09-300001341766celh:RangeOfExercisePrice1Member2022-09-3000013417662021-06-012021-06-090001341766us-gaap:PerformanceSharesMember2021-12-310001341766srt:MaximumMemberus-gaap:SeriesAPreferredStockMember2022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001341766us-gaap:PerformanceSharesMember2022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-12-310001341766us-gaap:FairValueInputsLevel3Memberus-gaap:SeriesAPreferredStockMember2022-09-300001341766srt:NorthAmericaMember2022-07-012022-09-300001341766celh:PepsicoIncMembercelh:ContractAssetsCurrentMember2022-01-012022-09-300001341766us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001341766celh:ForeignRevenuesMember2021-01-012021-09-300001341766celh:ForeignRevenuesMember2022-07-012022-09-300001341766celh:TransitionAgreementMember2022-07-012022-09-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-09-300001341766celh:RangeOfExercisePrice5Member2022-09-300001341766us-gaap:PerformanceSharesMember2020-12-310001341766celh:PepsicoIncMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-3000013417662022-01-012022-09-300001341766celh:PepsicoIncMembercelh:ContractAssetsNonCurrentMember2022-01-012022-09-300001341766us-gaap:RestrictedStockUnitsRSUMember2021-09-300001341766celh:RangeOfExercisePrice2Member2022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001341766celh:LicenseAgreementMember2022-07-012022-09-3000013417662015-04-300001341766celh:MezzanineEquityMember2022-07-012022-09-300001341766celh:AmazonMemberus-gaap:SalesRevenueNetMembersrt:MinimumMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001341766srt:RestatementAdjustmentMember2021-07-012021-09-300001341766us-gaap:PerformanceSharesMember2021-09-300001341766srt:MaximumMember2022-01-012022-09-300001341766us-gaap:PerformanceSharesMember2021-01-012021-09-300001341766us-gaap:RetainedEarningsMember2021-03-310001341766country:FI2022-09-3000013417662021-03-310001341766us-gaap:RestrictedStockMember2022-01-012022-09-300001341766celh:StockIncentivePlanMember2007-01-182007-01-180001341766us-gaap:FairValueInputsLevel3Memberus-gaap:IndefinitelivedIntangibleAssetsMember2022-09-3000013417662021-06-092021-06-090001341766srt:EuropeMember2021-07-012021-09-300001341766us-gaap:RestrictedStockMember2022-09-300001341766celh:AsRestatedMember2021-01-012021-09-300001341766us-gaap:FairValueInputsLevel2Memberus-gaap:SeriesAPreferredStockMember2022-09-300001341766us-gaap:RetainedEarningsMember2021-12-310001341766srt:NorthAmericaMember2022-01-012022-09-300001341766us-gaap:SeriesAPreferredStockMembercelh:SecuritiesPurchaseAgreementMember2022-09-300001341766celh:FuncFoodGroupMember2022-01-012022-09-300001341766celh:AsRestatedMember2021-09-300001341766country:SE2022-09-300001341766celh:PepsicoIncMember2022-01-012022-09-300001341766us-gaap:SalesRevenueNetMembersrt:MinimumMemberus-gaap:CustomerConcentrationRiskMembercelh:CostcoMember2022-01-012022-09-300001341766us-gaap:RetainedEarningsMember2022-06-300001341766us-gaap:CommonStockMember2022-03-310001341766country:SE2021-01-012021-09-300001341766us-gaap:AdditionalPaidInCapitalMember2020-12-310001341766us-gaap:VehiclesMember2021-12-310001341766srt:MinimumMemberus-gaap:SeriesAPreferredStockMember2022-09-300001341766celh:OtherMember2021-07-012021-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-06-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001341766celh:PepsicoIncMember2022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001341766srt:RestatementAdjustmentMember2021-09-300001341766celh:PepsicoIncMember2022-01-012022-09-300001341766celh:RangeOfExercisePrice5Member2022-01-012022-09-3000013417662021-06-300001341766celh:StockIncentivePlan2015Member2021-01-012021-09-3000013417662021-04-012021-06-300001341766celh:RangeOfExercisePrice7Member2022-09-300001341766srt:MinimumMember2022-01-012022-09-300001341766us-gaap:FairValueInputsLevel2Member2022-09-300001341766us-gaap:RetainedEarningsMember2022-04-012022-06-300001341766celh:OtherMember2021-01-012021-09-300001341766celh:OtherMember2022-07-012022-09-300001341766srt:ScenarioPreviouslyReportedMember2021-09-300001341766us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001341766us-gaap:CommonStockMember2021-04-012021-06-300001341766celh:OtherMember2022-01-012022-09-300001341766country:FI2021-12-310001341766us-gaap:SubsequentEventMember2022-10-122022-10-120001341766celh:RangeOfExercisePrice3Member2022-01-012022-09-3000013417662021-09-3000013417662020-11-012020-11-300001341766us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001341766us-gaap:RetainedEarningsMember2021-09-300001341766srt:MaximumMember2022-09-300001341766celh:FuncFoodGroupMember2022-09-3000013417662021-01-012021-12-310001341766srt:NorthAmericaMember2021-07-012021-09-300001341766us-gaap:RestrictedStockUnitsRSUMember2021-12-310001341766us-gaap:CommonStockMember2021-03-310001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001341766celh:PepsicoIncMembercelh:TrancheTwoMemberus-gaap:SubsequentEventMember2022-10-012022-12-310001341766srt:AsiaMember2022-07-012022-09-3000013417662022-09-300001341766celh:EightPercentageMember2022-01-012022-09-300001341766us-gaap:CommonStockMember2022-01-012022-03-310001341766us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMembercelh:CostcoMember2022-01-012022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2022-09-300001341766us-gaap:BuildingMemberus-gaap:MajorityShareholderMembercelh:CDFinancialLLCMember2022-01-012022-06-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100013417662022-11-0700013417662022-07-012022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001341766country:NO2022-09-300001341766celh:RangeOfExercisePrice7Member2022-01-012022-09-300001341766us-gaap:OfficeEquipmentMember2022-09-300001341766us-gaap:RetainedEarningsMember2022-09-300001341766us-gaap:FairValueInputsLevel1Memberus-gaap:SeriesAPreferredStockMember2022-09-300001341766srt:MaximumMembercelh:StockIncentivePlan2015Member2022-09-300001341766celh:StockIncentivePlanMember2022-09-300001341766celh:PublixMember2022-09-300001341766us-gaap:FairValueInputsLevel3Member2022-09-300001341766us-gaap:CommonStockMember2022-07-012022-09-300001341766celh:ForeignRevenuesMember2022-01-012022-09-300001341766srt:EuropeMember2022-07-012022-09-300001341766us-gaap:RestrictedStockUnitsRSUMember2020-12-3100013417662022-04-012022-06-300001341766celh:StockIncentivePlan2015Member2022-01-012022-09-300001341766us-gaap:RestrictedStockMember2021-09-300001341766celh:LicenseAgreementMember2021-01-012021-09-300001341766celh:TransitionAgreementMember2022-01-012022-09-300001341766srt:ScenarioPreviouslyReportedMember2021-01-012021-09-300001341766celh:AmazonMember2021-12-310001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-3100013417662021-07-012021-09-300001341766srt:EuropeMember2022-01-012022-09-300001341766celh:RangeOfExercisePrice4Member2022-09-300001341766country:SE2022-01-012022-09-300001341766us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001341766celh:SellingStockholdersMember2021-06-012021-06-140001341766celh:LicenseAgreementMember2021-07-012021-09-300001341766srt:AsiaMember2021-01-012021-09-300001341766us-gaap:RestrictedStockMember2020-12-310001341766celh:RangeOfExercisePrice3Member2022-09-300001341766celh:CompanyMember2021-06-012021-06-140001341766celh:RangeOfExercisePrice1Member2022-01-012022-09-300001341766country:SE2022-07-012022-09-300001341766us-gaap:CommonStockMember2021-01-012021-03-310001341766us-gaap:VehiclesMember2022-09-300001341766us-gaap:CommonStockMember2021-07-012021-09-300001341766us-gaap:RetainedEarningsMember2021-06-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001341766us-gaap:RetainedEarningsMember2020-12-310001341766celh:MezzanineEquityMember2022-09-300001341766us-gaap:CommonStockMember2020-12-310001341766us-gaap:ConvertiblePreferredStockMembercelh:TransitionAgreementMember2022-08-012022-08-010001341766srt:NorthAmericaMember2021-01-012021-09-300001341766us-gaap:SeriesAPreferredStockMembercelh:SecuritiesPurchaseAgreementMember2022-01-012022-09-300001341766celh:StockIncentivePlanMember2021-01-012021-09-300001341766us-gaap:RetainedEarningsMember2021-01-012021-03-310001341766celh:StockIncentivePlanMember2015-04-012015-04-300001341766celh:MerchandisingEquipmentCoolersMember2022-09-300001341766celh:SellingStockholdersMember2021-06-112021-06-110001341766country:US2022-09-300001341766us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001341766celh:TrancheOneMembercelh:PepsicoIncMember2022-08-012022-08-310001341766celh:PepsicoIncMemberus-gaap:SeriesAPreferredStockMember2022-08-012022-08-010001341766celh:MerchandisingEquipmentCoolersMember2021-12-310001341766us-gaap:RetainedEarningsMember2022-01-012022-03-310001341766srt:RestatementAdjustmentMember2021-01-012021-09-300001341766us-gaap:OfficeEquipmentMember2021-12-3100013417662022-06-300001341766us-gaap:SeriesAPreferredStockMember2021-12-310001341766us-gaap:SeriesAPreferredStockMember2022-01-012022-09-300001341766celh:TenPercentageMember2022-01-012022-09-300001341766us-gaap:SeriesAPreferredStockMembercelh:SecuritiesPurchaseAgreementMember2022-08-010001341766us-gaap:CommonStockMember2022-06-300001341766us-gaap:FairValueInputsLevel1Memberus-gaap:IndefinitelivedIntangibleAssetsMember2022-09-300001341766us-gaap:PerformanceSharesMember2022-01-012022-09-300001341766celh:CompanyMember2021-06-140001341766celh:AsRestatedMember2021-07-012021-09-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001341766celh:ForeignRevenuesMember2021-07-012021-09-300001341766us-gaap:AdditionalPaidInCapitalMember2022-06-300001341766celh:CompanyMember2021-06-112021-06-110001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001341766us-gaap:RestrictedStockMember2021-01-012021-09-3000013417662022-01-012022-03-310001341766celh:StockIncentivePlanMember2022-01-012022-09-300001341766celh:VestedMember2022-01-012022-09-300001341766us-gaap:CommonStockMember2021-06-300001341766us-gaap:RetainedEarningsMember2022-03-3100013417662020-12-310001341766us-gaap:AdditionalPaidInCapitalMember2021-03-310001341766celh:PepsicoIncMember2022-08-010001341766country:SE2021-07-012021-09-300001341766us-gaap:FairValueInputsLevel1Member2022-09-300001341766celh:PepsicoIncMember2022-09-300001341766celh:PepsicoIncMemberus-gaap:SeriesAPreferredStockMember2022-01-012022-09-300001341766us-gaap:SeriesAPreferredStockMember2022-08-010001341766celh:RangeOfExercisePrice6Member2022-09-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001341766us-gaap:CommonStockMember2021-12-310001341766celh:PepsicoIncMember2022-07-012022-09-300001341766us-gaap:AdditionalPaidInCapitalMember2022-03-310001341766celh:RangeOfExercisePrice2Member2022-01-012022-09-3000013417662022-03-310001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001341766country:US2021-12-310001341766us-gaap:RestrictedStockMember2021-12-310001341766us-gaap:RetainedEarningsMember2021-04-012021-06-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001341766celh:TwelvePercentageMember2022-01-012022-09-300001341766celh:LicenseAgreementMember2022-01-012022-09-300001341766us-gaap:SeriesAPreferredStockMember2022-08-012022-08-010001341766us-gaap:RestrictedStockUnitsRSUMember2022-09-3000013417662021-12-310001341766us-gaap:CommonStockMember2022-04-012022-06-3000013417662021-01-012021-09-300001341766us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001341766celh:RangeOfExercisePrice4Member2022-01-012022-09-300001341766us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-3000013417662021-01-012021-03-310001341766us-gaap:RetainedEarningsMember2022-07-012022-09-300001341766srt:ScenarioPreviouslyReportedMember2021-07-012021-09-30xbrli:purexbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

 

FOR THE QUARTERLY PERIOD ENDED September 30, 2022

 

Commission file number: 001-34611

 

CELSIUS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

20-2745790

(State or Other Jurisdiction of

 

(I.R.S. Employer

Incorporation or Organization)

 

Identification No.)

 

2424 N Federal Highway, Suite 208, Boca Raton, Florida 33431

(Address of Principal Executive Offices)

 

(561) 276-2239

(Registrant’s telephone number, including area code)

 

__________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Stock, $0.001 par value

 

CELH

 

Nasdaq Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large Accelerated Filer

Accelerated Filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 

The number of shares outstanding of the registrant’s common stock, $0.001 par value, as of November 7, 2022 was 76,225,201 shares.

 

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

PART I – FINANCIAL INFORMATION

 

1

 

 

 

 

Item 1.

Financial Statements.

 

1

 

Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021

 

1

 

Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021 (unaudited)

 

2

 

Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2022 (unaudited)

 

3

 

Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2021 (unaudited)

 

4

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)

 

5

 

Notes to Consolidated Financial Statements (unaudited)

 

6

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

28

 

 

 

 

Item 3.

Quantitative Disclosures About Market Risk.

 

32

 

 

 

 

Item 4.

Controls and Procedures.

 

32

 

 

 

 

PART II – OTHER INFORMATION

 

33

 

 

 

 

Item 1.

Legal Proceedings.

 

33

 

 

 

 

Item 1A.

Risk Factors.

 

33

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

 

33

 

 

 

 

Item 3.

Defaults Upon Senior Securities.

 

33

 

 

 

 

Item 4.

Mine Safety Disclosures.

 

33

 

 

 

 

Item 5.

Other Information.

 

34

 

 

 

 

Item 6.

Exhibits.

 

35

 

 

 

 

SIGNATURES

 

35

 

i


 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

 

Celsius Holdings, Inc.

Consolidated Balance Sheets

(In thousands, except par value)

(Unaudited)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

592,134

 

 

$

16,255

 

Restricted cash

 

 

134,838

 

 

 

 

Accounts receivable-net (note 2)

 

 

117,003

 

 

 

38,741

 

Note receivable-current (note 7)

 

 

2,888

 

 

 

2,588

 

Inventories-net (note 5)

 

 

153,933

 

 

 

191,222

 

Prepaid expenses and other current assets (note 6)

 

 

12,096

 

 

 

13,555

 

Deferred other costs-current (note 13)

 

 

14,124

 

 

 

 

Total current assets

 

 

1,027,016

 

 

 

262,361

 

 

 

 

 

 

 

 

Note receivable (note 7)

 

 

3,465

 

 

 

7,117

 

Property and equipment-net (note 9)

 

 

5,782

 

 

 

3,180

 

Deferred tax asset (note 17)

 

 

 

 

 

9,019

 

Right of use assets-operating leases (note 8)

 

 

1,105

 

 

 

1,128

 

Right of use assets-finance leases (note 8)

 

 

222

 

 

 

86

 

Other long-term assets

 

 

242

 

 

 

300

 

Deferred other costs-non-current (note 13)

 

 

265,993

 

 

 

 

Intangibles (note 10)

 

 

11,322

 

 

 

16,301

 

Goodwill (note 10)

 

 

12,502

 

 

 

14,527

 

Total Assets

 

$

1,327,649

 

 

$

314,019

 

 

 

 

 

 

 

 

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses (note 11 & 13)

 

$

143,947

 

 

$

91,479

 

Accrued distributor termination fees (note 2 & 13)

 

 

115,551

 

 

 

 

Lease liability obligation-operating leases (note 8)

 

 

663

 

 

 

512

 

Lease liability obligation-finance leases (note 8)

 

 

95

 

 

 

157

 

Deferred revenue-current (note 2 & 13)

 

 

7,770

 

 

 

 

Other current liabilities (note 12)

 

 

3,267

 

 

 

976

 

Total current liabilities

 

 

271,293

 

 

 

93,124

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

Lease liability obligation-operating leases (note 8)

 

 

462

 

 

 

658

 

Lease liability obligation-finance leases (note 8)

 

 

167

 

 

 

45

 

Deferred tax liability (note 17)

 

 

25,457

 

 

 

3,146

 

Deferred revenue-non-current (note 2 & 13)

 

 

146,333

 

 

 

 

Total Liabilities

 

 

443,712

 

 

 

96,973

 

 

 

 

 

 

 

 

Mezzanine Equity:

 

 

 

 

 

 

Series A convertible preferred shares, $0.001 par value, 5% cumulative dividends; 1,467 and 0 shares issued and outstanding at September 30, 2022 and December 31,2021, respectively, aggregate liquidation preference of $550,000 and $0 as of September 30, 2022 and December 31, 2021, respectively (note 14)

 

 

824,488

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000 shares authorized, 76,216 and 74,909 shares
   issued and outstanding at September 30, 2022 and December 31, 2021, respectively (note 15)

 

 

76

 

 

 

75

 

Additional paid-in capital

 

 

281,133

 

 

 

267,847

 

Accumulated other comprehensive income (loss)

 

 

(4,211

)

 

 

614

 

Accumulated deficit

 

 

(217,549

)

 

 

(51,490

)

Total Stockholders’ Equity

 

 

59,449

 

 

 

217,046

 

Total Liabilities, Mezzanine Equity and Stockholders’ Equity

 

$

1,327,649

 

 

$

314,019

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements

1


 

Celsius Holdings, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share amounts)

(Unaudited)

 

 

For the three months ended September 30,

 

 

For the nine months ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue (note 4)

 

$

188,233

 

 

$

94,909

 

 

$

475,640

 

 

$

210,017

 

Cost of revenue (note 2)

 

 

109,583

 

 

 

57,216

 

 

 

283,778

 

 

 

123,495

 

Gross profit

 

 

78,650

 

 

 

37,693

 

 

 

191,862

 

 

 

86,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

 

198,756

 

 

 

22,621

 

 

 

262,782

 

 

 

50,111

 

General and administrative expenses

 

 

27,493

 

 

 

23,257

 

 

 

54,135

 

 

 

43,363

 

Total operating expenses

 

 

226,249

 

 

 

45,878

 

 

 

316,917

 

 

 

93,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

$

(147,599

)

 

$

(8,185

)

 

$

(125,055

)

 

$

(6,952

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income on note receivable (note 7)

 

 

53

 

 

 

76

 

 

 

186

 

 

 

241

 

Interest income (expense), net (note 2)

 

 

1,396

 

 

 

(101

)

 

 

1,393

 

 

 

(8

)

Foreign exchange loss

 

 

(254

)

 

 

(327

)

 

 

(930

)

 

 

(452

)

Total other expense

 

 

1,195

 

 

 

(352

)

 

 

649

 

 

 

(219

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before income taxes

 

$

(146,404

)

 

$

(8,537

)

 

$

(124,406

)

 

$

(7,171

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (note 17)

 

 

35,492

 

 

 

834

 

 

 

41,653

 

 

 

834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(181,896

)

 

$

(9,371

)

 

$

(166,059

)

 

$

(8,005

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: dividends on Series A convertible preferred shares (note 14)

 

$

(4,596

)

 

$

 

 

$

(4,596

)

 

$

 

Net loss attributed to common shareholders

 

$

(186,492

)

 

$

(9,371

)

 

$

(170,655

)

 

$

(8,005

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain/(loss)

 

 

(2,038

)

 

 

1,282

 

 

 

(4,813

)

 

 

1,367

 

Comprehensive loss

 

$

(188,530

)

 

$

(8,089

)

 

$

(175,468

)

 

$

(6,638

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive

 

$

(2.46

)

 

$

(0.13

)

 

$

(2.26

)

 

$

(0.11

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and dilutive

 

 

75,796

 

 

 

74,609

 

 

 

75,625

 

 

 

73,759

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements

2


 

Celsius Holdings, Inc.

Consolidated Statements of Changes in Stockholders’ Equity and Mezzanine Equity

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Mezzanine Equity

 

Additional
Paid-In Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Accumulated Deficit

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Preferred Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

Total

 

 

Balance at December 31, 2021

 

 

74,909

 

 

$

75

 

 

 

 

 

$

 

$

267,847

 

 

$

614

 

 

$

(51,490

)

 

$

217,046

 

 

Share-based payment expense

 

 

 

 

 

 

 

 

 

 

 

 

 

4,310

 

 

 

 

 

 

 

 

 

4,310

 

 

Issuance of common stock pursuant to stock incentive plan - cashless

 

 

248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock pursuant to stock incentive plan - cash

 

 

194

 

 

 

 

 

 

 

 

 

 

 

810

 

 

 

 

 

 

 

 

 

810

 

 

Foreign currency fluctuations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(491

)

 

 

 

 

 

(491

)

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,679

 

 

 

6,679

 

 

Balance at March 31, 2022

 

 

75,351

 

 

$

75

 

 

 

 

 

$

 

$

272,967

 

 

$

123

 

 

$

(44,811

)

 

$

228,354

 

 

Share-based payment expense

 

 

 

 

 

 

 

 

 

 

 

 

 

4,207

 

 

 

 

 

 

 

 

 

4,207

 

 

Issuance of common stock pursuant to stock incentive plan - cashless

 

 

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock pursuant to stock incentive plan - cash

 

 

172

 

 

 

 

 

 

 

 

 

 

 

449

 

 

 

 

 

 

 

 

 

449

 

 

Foreign currency fluctuations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,296

)

 

 

 

 

 

(2,296

)

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,158

 

 

 

9,158

 

 

Balance at June 30, 2022

 

 

75,622

 

 

$

75

 

 

 

 

 

$

 

$

277,623

 

 

$

(2,173

)

 

$

(35,653

)

 

$

239,872

 

 

Share-based payment expense

 

 

 

 

 

 

 

 

 

 

 

 

 

6,263

 

 

 

 

 

 

 

 

 

6,263

 

 

Issuance of common stock pursuant to stock incentive plan - cashless

 

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock pursuant to stock incentive plan - cash

 

 

536

 

 

 

1

 

 

 

 

 

 

 

 

1,843

 

 

 

 

 

 

 

 

 

1,844

 

 

Issuance of Series A convertible preferred shares - net of issuance costs

 

 

 

 

 

 

 

 

1,467

 

 

 

824,488

 

 

 

 

 

 

 

 

 

 

 

824,488

 

 

Dividends paid to Series A convertible preferred shares